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The financial statements for Royale and Cavalier companies are summarized here: These two companies are in the same business and state but different cities. Each
The financial statements for Royale and Cavalier companies are summarized here:
These two companies are in the same business and state but different cities. Each company has been in operation for about years.
Both companies received an unqualified audit opinion on the financial statements. Royale Company wants to borrow $ cash and
Cavalier Company is asking for $ The loans will be for a twoyear period. Both companies estimate bad debts based on an
aging analysis, but Cavalier has estimated slightly higher uncollectible rates than Royale. Neither company issued stock in the current
year. Assume the endofyear total assets and net equipment balances approximate the year's average and all sales are on account.
Required:
Calculate the following ratios. Use days in a year. Round your intermediate calculations and final answers to decimal
places.
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